Nominal Debt and the Dynamics of Currency Crises Reportar como inadecuado

Nominal Debt and the Dynamics of Currency Crises - Descarga este documento en PDF. Documentación en PDF para descargar gratis. Disponible también para leer online.

We study the interaction of fiscal and monetary policies during a currency crisis in an economy with government nominal liabilities. We show that the stock and maturity of these liabilities are key determinants of the magnitude, timing and predictability of a devaluation. Among notable features of our model, monetary authorities defend the currency parity conditional on the level of the interest rate, rather than on the stock of international reserves; budget deficits need not be high before a currency crisis; postdevaluation inflation may exhibit little persistence, and money demand need not fall after the crisis.

Keywords: currency crisis ; speculative attacks ; fiscal policy

Subject(s): Financial Economics

Issue Date: 2000

Publication Type: Working or Discussion Paper

PURL Identifier:

Total Pages: 35

JEL Codes: F31; F33; E58

Series Statement: Center Discussion Paper No. 820

Record appears in: Yale University > Economic Growth Center > Center Discussion Papers

Autor: Corsetti, Giancarlo ; MacKowiak, Bartosz


Documentos relacionados